**Sustainability of Ethanol Sector in Brazil: A Multicase Study Study**

**Sustainability of Ethanol Sector in Brazil: A Multicase** 

DOI: 10.5772/intechopen.71495

Karina R.O.V. Souza and Ronaldo Perez

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Karina R.O.V. Souza and Ronaldo Perez Additional information is available at the end of the chapter

Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.71495

#### **Abstract**

Sustainability has been worldwide discussed, and when it comes to sugarcane-ethanol production, there are many standards required from importing countries to its suppliers. Brazil is the second biggest producer of ethanol in the world, and it has a competitive advantage over other countries since it has a high established production and land for agricultural expansion. The aim of this research is to evaluate the situation of ethanol plants in Minas Gerais state concerning their compliance to sustainability criteria and to briefly present the current situation of ethanol plants in Brazil. This evaluation is based on Bonsucro certification. A multicase study, composed of four sugarcane-ethanol plants, was conducted. The results indicated that the studied plants were not prepared to receive Bonsucro certification. They justified it due to constant changes in legislation relating to sustainability, and the fact that these criteria are not required by their customers, however, was concluded that the companies did not take a proactive posture, seeking knowledge about standards related to the topic. Obtaining international certification did not look appealing by the time of the study, but attendance to national legislation is mandatory. In 2017, the number of certified plants has increased, showing that there has been progress.

**Keywords:** sustainability, ethanol plants, sugarcane, Bonsucro certification, Minas Gerais

### **1. Introduction**

Discussions about sustainability and its importance to the planet have been intensified since 1990s. In the face of so many climate changes and environmental disasters, concerns that in the future such picture gets worse have led national and international companies and organizations to think about the best way to work with natural resources, to obtain minor environmental impact.

Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. © 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons

Sustainability is understood as the ability to use natural resources and, in whole or in part, to return them to the planet, guaranteeing a good quality of life for those living in the environment and for those who will live.

In this sense, the discussion of environmental sustainability arises from the limitation and misuse of available resources and can be reversed by the use of clean technologies and, above all, by the creation and consolidation of administrative mechanisms of environmental

Sustainability of Ethanol Sector in Brazil: A Multicase Study

http://dx.doi.org/10.5772/intechopen.71495

31

Sustainability is understood as a combination of three pillars, economic, social, and environmental [7], or also as meeting the basic needs of all, giving them the opportunity to meet their

Basurko et al. [9] argue that today there is a growing interest in sustainable products, and it is clear that this major shift toward sustainable development is essential for a competitive market. Moldan et al. [10] say that to improve the cost-effectiveness and operational value of environmental policies in the context of sustainable development, efforts should be made to

A sustainability indicator can be understood as a quantitative or qualitative tool that allows the analysis of changes while measuring and communicating the progress toward the sustainable use and management of economic, social, and environmental resources [11]. According to [12, 13], there is a range of tools developed, which use indicators to measure sustainability. The use of indicators and indexes for sustainability assessment has increased a lot in recent decades, since it is an instrument that simply expresses a complex message, resulting from

A number of papers have been published about sustainability of sugarcane-ethanol production [15–17] and the impact of it on their countries [18–20]. In those papers, it is possible to observe the range of indicators used and the variety of certifications (compulsory and volun-

The sugar-ethanol sector is characterized by an activity that uses natural resources intensively. It exerts influence in the generation of foreign exchange for the country, through the production of its derivatives, demanding the attention of public and private entities in the environmental sphere, due to the problems of compaction of the soil, burning of the cane, and emission of gases, which intensify global warming and degrade the environment. The advantages are obtained with the mechanical harvesting without burning, due to the straw

For the variables that make up environmental sustainability and will be taken as the basis of this study, mention should be made of areas for sugarcane expansion, compliance with legislation, treatment of effluents and waste, and mechanization of the harvest. These variables are of great importance when analyzing the behavior of companies, through the presence or absence of environmental practices internally, as well as meeting the Bonsucro certification

improve information for decision-making by assessing progress through indicators.

protection [6].

many factors [14].

needs in the future, aspiring for a better life [8].

tary) that should be followed and attended.

**1.2. Dimensions of sustainability**

*1.2.1. Environmental dimension*

that is left in the soil [21, 22].

indicators, the focus of the study.

The sugar and ethanol trade in the international market has suffered from nontrade barriers, which has restricted the expansion of the sector, mainly in countries under development. These barriers are standards and directives related to sustainability, which have been imposed by importing countries. Examples are European Renewable Energy Directive 2009/28/EC [1], which was published in April 2009, and Bonsucro (Better Sugarcane Initiative) [2] which was last updated in April 2014.

The European Renewable Energy Directive 2009/28/EC deals with the promotion of the use of energy from renewable sources and sets out a number of requirements to be followed by all domestic and international biofuel producers and buyers.

Bonsucro is a worldwide multistakeholder association created to reduce the environmental and social impacts of sugarcane by designing a standard and program to transform the sugarcane-ethanol sector [2]. The adhesion favors the achievement of high standards of sugarcane production, far above what is determined by national environmental legislation.

The number of certified plants by Bonsucro has increased each year. Between 2015 and 2016, membership grew by 4.5%, and the number of Bonsucro production certificates by 24%, with 12 new certified mills, including first certifications in Guatemala, Nicaragua, Dominican Republic and Thailand, more than doubling the countries which have Bonsucro certifications to a total of 9 [3].

In this sense, this document aims to present the situation of sustainability in the sugarcaneethanol industries of Minas Gerais state, Brazil, using as indicators the criteria required by international legislation, especially those from Bonsucro and the European Renewable Energy Directive 2009/28/EC. The goal is to present how sustainable the ethanol plants are according to those directives, and how much they could and should be. This is extremely important to sugarcane-ethanol plants, since in many moments, they have been held responsible for negative actions against environment and society, and so, the necessity for clarifications and proofs of compliance with standards on sustainability has been increasingly strong. In addition, it aims to demonstrate how the plants evolved in this topic in the last five years.

#### **1.1. Sustainability in the sugarcane-ethanol sector**

The process of man-nature interaction is exploratory since the first inhabitants, and thinking about this relationship without thinking about the transformation of the environment is impossible. This relationship was intensified and improved until in the eighteenth century the Industrial Revolution that began in England spread, reaching the other countries. This in turn stimulated by the accumulation of capital consolidated capitalism, an economic model that dominates until the present day [4]. Since then, natural resources have been explored intensively and the impacts of this unbalanced degradation began to be perceived in the twentieth century, causing concern to environmentalists and taking on increasing proportions [5].

In this sense, the discussion of environmental sustainability arises from the limitation and misuse of available resources and can be reversed by the use of clean technologies and, above all, by the creation and consolidation of administrative mechanisms of environmental protection [6].

Sustainability is understood as a combination of three pillars, economic, social, and environmental [7], or also as meeting the basic needs of all, giving them the opportunity to meet their needs in the future, aspiring for a better life [8].

Basurko et al. [9] argue that today there is a growing interest in sustainable products, and it is clear that this major shift toward sustainable development is essential for a competitive market. Moldan et al. [10] say that to improve the cost-effectiveness and operational value of environmental policies in the context of sustainable development, efforts should be made to improve information for decision-making by assessing progress through indicators.

A sustainability indicator can be understood as a quantitative or qualitative tool that allows the analysis of changes while measuring and communicating the progress toward the sustainable use and management of economic, social, and environmental resources [11]. According to [12, 13], there is a range of tools developed, which use indicators to measure sustainability. The use of indicators and indexes for sustainability assessment has increased a lot in recent decades, since it is an instrument that simply expresses a complex message, resulting from many factors [14].

A number of papers have been published about sustainability of sugarcane-ethanol production [15–17] and the impact of it on their countries [18–20]. In those papers, it is possible to observe the range of indicators used and the variety of certifications (compulsory and voluntary) that should be followed and attended.
